Khanh Hoa Power JSC: Stronger after Privatisation

4:39:47 PM | 12/1/2010

Over the past more than 30 years, Khanh Hoa Power Joint Stock Company has spared no effort, with its impressive progresses, to assert its pioneering and driving role in the industrialisation and modernisation of Khanh Hoa province.
Khanh Hoa Power Joint Stock Company, which was formerly the State-owned Khanh Hoa Power Company, went public on July 1, 2005 according to the government policy on acceleration of State-owned enterprise privatisation. Its main business scopes include producing and trading electricity, trading public telecommunications and involving other services such as consulting, construction, electrical equipment, hotel, small hydroelectric plant. At present, the company is the first power distributor in Vietnam to operate as a joint stock company and has obtained impressive results in production and business activities. And, the company has listed its shares, ticker KHP, on the Hochiminh Stock Exchange - the primary bourse of Vietnam.
In electricity production, with solutions to renovate and upgrade the power grid and apply advanced techniques in managing and operating activities, the company supplies electricity safely and continually and ensures electrical quality for all users to serve the local socioeconomic development and guarantee the security and defence in the province. Additionally, KHPC has managed to enhance local performance, analyse data and adopt many effective solutions to reduce the amount of electricity necessary for transmission. Moreover, the firm also regularly improves customer service and updates customer information from which customer care services as well as electricity price subjected to specific customers are quicker and more accurate.
Khanh Hoa Power Joint Stock Company has also focused investments on renovating and repairing the power grid in rural areas. Every year, from its construction investment capital sources, the company spends from VND10 billion to VND15 billion to upgrade and repair old rural power systems and expand power supplies for needing regions. After three years the company has invested in renovating and repairing, the rural power network has reduced the average loss from 25 percent to 10 percent to 12 percent. Total power consumption in rural areas in 2008 was more than 86 million kWh, accounting nearly percent of commercial electricity of the company. The total number of households in Khanh Hoa rural areas in 2008 was 131,000, of which 129,000 have access to electricity, or 98.47 per cent of the total. Currently, the company is investing VND40 billion to expand the electricity coverage and plans to inject VND100 billion from 2010 to VND2015 to upgrade the rural power network.
In telecom business, Khanh Hoa Power Joint Stock Company has continuously sought effective business methods. As of 2008, the company completed the installation of 43 base transceiver stations (BTS) in the province and has served more than 48,985 CDMA subscribers. KHPC is serving 1,362 internet subscribers and 176 fixed wireless telephone subscribers.
In addition to stabilising and developing power production and business activities, Khanh Hoa Power Joint Stock Company has promoted research activities, studied and negotiated with partners to expand business operations into other areas. Specifically, the company has shared the capital with several other partners to set up joint stock companies such as Song Tro Hydropower Joint Stock Company (with 45 per cent of charter capital contributed by KHPC), Power Investment Joint Stock Company 3 (2 percent of charter capital) EVNLand-NhaTrang Real Estate (8 per cent of charter capital).
Knowing that the human factor is the primary decisive to success or failure in any business; thus Khanh Hoa Power Joint Stock Company pays special attention to training its workforce by organising regular training courses and allowing its staff to follow short-term training courses held the power sector and universities to improve their professional skills. In addition to increasing the quality of human resources, the company has also attached much importance to ensuring labour safety in line with regulations and instructions of the Government, ministries and other authorities. The trade union and professional divisions have coordinated to strengthen labour safety regulations; thus, no serious accidents were seen in the past year. Moreover, in 2008, the company completed the construction and was certified the TCVN ISO 9001:2000 quality management system.
Focusing on investing in production and business development and expansion, Khanh Hoa Power Joint Stock Company has also given much priority to thanksgiving and charity activities like building gratitude houses for heroic Vietnamese mothers and funding more than VND100 million annually to charity, social and poverty reduction funds.
With its encouraging business achievements, Khanh Hoa Power Joint Stock Company has contributed significantly to the socioeconomic development roadmap and ensured political stability, security and defence in the province, thus giving a facelift for Khanh Hoa. The Party, the State, the electricity sector as well as the local authorities and people highly appreciate the contribution of the company to building a prosperous and powerful province of Khanh Hoa. The firm has received diplomas of merits from the Provincial People's Committee for outstanding achievements in fire prevention in five years from 2001 to 2006; certificates of merits from the Ministry of Industry and Trade in 2007, certificates of merits from the Electricity of Vietnam in 2008; the first-time National Outstanding Entrepreneur and Enterprise Cup in 2009.
In addition to continued investments for expanding ongoing activities, the company has also stepped into potential and advantageous fields like investing and exploiting small hydroelectric sources; producing and trading electrical equipment, real estate, tourism, information technology, centrifugal prestressed concrete products, etc.
After more than 30 years of continued effort for the cause of Khanh Hoa socioeconomic development, the entire Khanh Hoa Power Joint Stock Company will surely make new strong, innovative progresses to be a driving engine in the national industrialisation and modernisation.
Viet Pham